← 💹 Economics · usually met in Std 6-12
Anything widely accepted in exchange. Its value rests on confidence, not on the paper — which is why counterfeiting and inflation are both attacks on the same thing.
Before money, trade needed a double coincidence of wants: you had to find somebody who had what you wanted and wanted what you had. Money solves that by being a medium of exchange, a store of value and a unit of account. Coins gave way to notes backed by metal, and then to fiat money, which is backed by law and by confidence alone.
Banks do more than store it. When a bank lends, it creates a deposit, which is why the money supply is larger than the currency printed. A central bank manages that system. Digital payments have changed everyday life in India faster than almost anywhere — but the underlying rules have not changed, and neither has the oldest one: if a stranger is in a hurry for you to send money, something is wrong.
Want to see it moving? Search YouTube for “Money” ↗ — we send you to the search rather than to one video, because a link to one video eventually rots.
This entry was written for Star Student in our own words — it is a summary, not a source. Here is where the people who actually hold these facts keep them. Go and check.
Your own textbook ↗Balbharati publishes the textbooks free to read online. Your chapter is the thing to check first — an encyclopedia is a summary, and the syllabus is the syllabus. Reserve Bank of India ↗Money, banking and inflation, from the central bank itself.Last gone through: 1 October 2026 · How these entries are written
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